Why I recommend not using online lenders

NovaStar Home Mortgage Inc. and two other lenders accused of engaging in bait-and-switch tactics on the online mortgage-lead-generation site Bankrate.com have been hit with a $46 million judgment.

Without admitting fault or liability, Bankrate in October agreed to pay American Interbanc $3 million to settle allegations that the company did little to prevent lenders from engaging in bait-and-switch tactics.